INCORPORATION OF A

COMPANY
WHAT IS INCORPRATION OF A
COMPANY?
The incorporation of a corporation refers to the legal method that’s
accustomed to typing a company entity or a corporation. Associate in
the nursing incorporated company could be a separate legal entity on
its own, recognized by the law. These firms will be know with terms like
‘Inc’ or ‘Limited’ in their names. It becomes a company legal entity to
fully break away from its homeowners.
STEPS IN INCORPORATION OF A
COMPANY
1. Ascertaining Handiness of Name
2. Preparation of Memo of Association and Articles of Association
3. Printing, Linguistic Communication, and Stamping, Vetting of Memo and
Articles
4. Power of Attorney
5. Statutory Declaration
6. Payment of Registration fees
7. Certificate of Incorporation
8. Capital Subscription Stage
9. Certificate of Incorporation of the Company
ASCERTAINING HANDINESS OF NAME
The first step within the incorporation of an associate in the company is
to decide on an applicable name. A corporation is known through the
name its registers. The name of corporate is explicit within the memo
of association of the corporate. The company’s name should finish with
‘Limited’ if it’s a public company and ‘Private Limited’ if it’s a non-public
company.
PREPARATION OF MEMO OF
ASSOCIATION AND ARTICLE OF
ASSOCIATION
The memo of association of a corporation will be cited as its constitution
or rulebook. The memo states the sphere during which the corporate can
do business, objectives of corporate, yet because of the style of business
the corporate plans to undertake. It’s divided into 5 clauses
i. Name Clause
ii. Registered workplace Clause
iii. Objects Clause
ix. Liability Clause
v. Capital Clause
PRINTING,LINGUISTIC COMMUNICATION, AND
STAMPING, VETTING OF MEMO AND ARTICLES
The Registrar of corporation usually helps promoters to draw up and
draw up and draft the memo and articles of association. Above all, with
promoters hasn’t any previous expertise in drafting and memo articles.
Once these are examined by the registrar of corporations.
POWER OF ATTORNEY
To fulfil the legal and complicated documentation formalities of
incorporation of a corporation, the promoter could then use an
Associate in a professional can have the authority to act on behalf of
the corporate and its promoters. The professional can have the
authority to form changes within the memo and articles and different
documents that are filed with the registrar.
STATUTARY DECLARATION
This declaration, moreover states that ‘All the necessities of the businesses act and
therefore the rules under that are compiled with respect of and matters precedent
and incidental to that. A statutory declaration by any one of the subsequent persons
stating that each one the necessities of the act relating to registration are punctually
compiled with:
1) Associate in Advocate of the Supreme Court or state Supreme Court
2) Associate in professional or attorney is entitled to seem before a state supreme
court
3) A controller is engaged in the information of the corporate and additionally active in
India.
4) Any person is called within the Articles of Association because of the company’s
Director, Manager, or Secretary.
PAYMENT OF REGISTRATION FEES
A prescribed fee is to be paid to the Registrar of corporations
throughout incorporation. It depends on the nominal capital of the
businesses that even have share capital
CERTIFICATE OF INCORPORATION
If the Registrar is totally glad that each one needs are consummated by
the corporate that’s being incorporated, then he can register the
corporate and issue a certificate of incorporation. As a result, the
incorporation certificate provided by the Registrar is definite proof that
each one needs of the act are met
CAPITAL SUBSCRIPTION STAGE
A private company or a public company not having share capital will
begin business at once on its incorporation. Capital Subscription Stage
and Commencement of Business Stage relevant solely within the case
of a public company having a share capital. Such a corporation should
suffer these two extra stages before it will begin its business. The
capital subscription stage deals with the task of getting the required
capital for the corporate.
CERTIFICATE OF INCORPORATION OF
THE COMPANY
After the higher than document filed with the registrar and therefore
the prescribed fees paid. The Registrar can then issue a certificate
referred to as certificate of incorporation and enter the name corporate
within the registrar unbroken in his workplace. This certificate of
incorporation entitles the corporate to a legal person